MoD hires PwC to attract private companies to take over Army workshops
BENGALURU: Two years after the Ministry of Defense (Ministry of Defense) decided for the first time to allow private companies to manage and operate all Army Base Workshops (ABW) spread across eight cities in six states, and workshops the associated station has hired a consulting firm PricewaterhouseCoopers (PwC) to attract private industries.
In what is called the GOCO Model (contractor administered by the government), private companies will not even be required to make any investment in land, equipment, machinery or the support system, all of which will be available immediately. The TOI was the first to report that MoD was implementing the GOCO model in January 2018.
In his latest notification, MoD, in discussing the GOCO model, says: “We have hired PwC Private Limited to execute this commitment. PwC intends to hold conferences and consultations with industry participants, who may be interested ...
The decision to implement the GOCO model is based on the recommendations of an expert committee (CoE) constituted to recommend measures to improve combat capacity and rebalance the defense expenses of the armed forces. It is also in line with the initiatives of Prime Minister Narendra Modi to improve private participation in defense.
As part of the proposal, the government will provide land, infrastructure, plant and machinery, support of the equipment system, supervision and facilitate the contractor. And, the contractor operates and uses the facilities available, manages all types of work and is also responsible for obtaining the necessary licenses, certifications and accreditations to meet mutually agreed objectives and maintain the machinery and plant services integral to the company.
Established during WWII To keep the army operational and ready to guarantee the dignity of the battle at all times, the ABWs are responsible for the review and for guaranteeing the restoration of zero hours, zero kilometers, which means making the weapons system as close as possible. possible of the new condition.
There are eight ABW, one in New Delhi, Kankinara, Allahabad, Agra, Meerut, Kirkee and Bengaluru (see chart), of which seven are responsible for the repair and overhaul of equipment or weapons, and only 515 ABW in Bengaluru is responsible for the indigenization and manufacture of spare parts.
Although the Ministry of Defense decided to do this in late 2017 and early 2018, the industry's response has been poor. Earlier this year, the Ministry of Defense had set an April deadline for wiring in private industry in at least four of the ABWs: workshops 506 (Jabalpur), 508 (Allahabad), 510 (Meerut) and 512 (Kirkee ), while the rest was planned for later.
However, the ministry has failed to do that and the hiring, which according to sources, was the reason to hire PwC. There were some people who visited us in December, but there has been no concrete development, a 515 ABW source in Bangalore told TOI.
The Ministry of Defense has told industries that they can now write to PwC directly. Please send your last interest before January 10 to PwC, read the notification, and add that the agenda of these interactions planned by PwC would be to understand the opinions of industry participants on GOCO opportunities and issues. The notification has listed the eight ABWs in the last notification.